High mortgage rates may be having implications on the local homebuying market, Barrie’s realtors association says.
The Barrie and District Association of Realtors (BDAR) released its latest round of monthly statistics recently, noting a total of 713 homes were sold in Simcoe County in May, an 18.3-per-cent drop versus the same month a year ago. The average sale price for homes in Simcoe County was $842,615, a 3.2-per-cent decrease from May 2023.
“The Simcoe County real estate market is showing resilience despite the fluctuations observed in May,” BDAR chair Lindsay Percy said in a media release. “While we are seeing a decrease in sales compared to last year, the month-over-month growth is a positive indicator. The increase in active listings provides more options for buyers, and we anticipate a balanced market as we move forward."
In Bradford last month, 37 homes were sold — down from 54 in May 2023. The year-over-year sales price also declined by 1.6 per cent to $1.13 million.
Meanwhile, new listings (135), active listings (163) and months of inventory (4.41) all showed substantial year-over-year growth, at eight, 103.8 and 197.4 per cent, respectively.
Innisfil showed a similar year-over-year trend, with the number of units sold (65) and average price ($891,093) both declining by 24.4 and 5.9 per cent, respectively. However, new listings (269), active listings (377) and months of inventory (5.8) each grew by 3.9, 45.6 and 92.6, respectively.
Percy indicated there is “cautious adjustment” happening within the real estate landscape right now, as buyers and sellers navigate changing market conditions.
Here’s how three other municipalities within BDAR's coverage area fared last month:
- Barrie — Overall, 241 homes sold in May, down 21.5 per cent from the same month the year prior. The average sale price was $781,377 last month, nearly matching the number from one year ago. New listings dropped 20.1 per cent to 623 over that span, though active listings did climb 72.3 per cent to 727. There is three months’ worth of inventory left on the city’s market, up 119.5 per cent from a year ago.
- Essa — Twenty-eight units sold (a 12.5-per-cent decrease) for an average of $887,179 (a 14.2-per-cent jump). New listings rose 15.9 per cent to 80, active listings jumped 129.3 per cent to 94, and there were 3.4 months of inventory, up 162 per cent from May 2023.
- Orillia — Thirty-seven units sold (a 28.9-per-cent drop) for an average of $655,162 (down 11.1 per cent). New listings fell 43.2 per cent to 88, active listings increased 49.5 per cent to 142, and there were 3.8 months of inventory available, up 110.1 per cent from May 2023.
Meanwhile, Ontario home prices were stable in May, continuing a trend set in February that ended a five-month fall that began last summer, figures released Monday by the Canadian Real Estate Association (CREA) show.
On a year-over-year basis, the average single-family home in the province sold for $951,600 in May, down 3.8 per cent from the $989,300 they went for a year ago.
The numbers are seasonally adjusted and do not take inflation into account.
Inflation, depending on what measure you choose, is running at between 3.4 and 3.7 per cent.
“May was another sleepy month for housing activity in Canada, although it may prove to be the last of those now that interest rates have moved lower,” CREA senior economist Shaun Cathcart said in a release.
“The Bank of Canada’s June 5 rate cut may have only been 25 basis points, but the psychological effect for many who have been sitting on the sidelines was no doubt huge. The question now turns to further rate cuts — specifically, how fast, and how far?”
On a province-wide basis, prices for condos in a year-over-year comparison fell 3.4 per cent, and townhouses fell 2.2 per cent.
“The spring housing market usually starts before all the snow has melted, somewhere around the beginning of April, but this year I believe a lot of people were waiting for the Bank of Canada to wave the green flag,” CREA chair James Mabey said.
“That first rate cut is expected to bring some pent-up demand back into the market, and those buyers will find there are more homes to choose from right now than at any other point in almost five years."
BDAR represents more than 1,600 realtors within the Barrie and Simcoe County area. For more details on the association, visit bdar.ca.
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